The recent Bitcoin rally, which saw the cryptocurrency surpass $88,000, faced a swift halt yesterday following the latest tariffs imposed by former President Trump. As a result, Bitcoin (BTC) plunged over $6,000 within hours.
Alternative cryptocurrencies, or altcoins, mirrored Bitcoin’s movements, with many suffering losses of up to 10% from their recent peaks.
Bitcoin Plummets by $6,000
The weekend for Bitcoin was quite uneventful, as the asset struggled to break through the $84,000 mark, ultimately falling to around $81,000 on Sunday night and into Monday. Although BTC managed a slight recovery back to $84,000, it was unable to sustain this level.
Increased volatility ensued on Tuesday, when Bitcoin briefly surged from $82,400 to $85,500 in just a few hours. However, it could not maintain this momentum and rapidly fell to $81,200 during a flash crash on Bitstamp.
This decline proved to be short-lived, as the cryptocurrency began to gain traction again last night amidst false reports suggesting that Trump might soon distance himself from Musk.
Bitcoin soared to a weekly high of over $88,500 in a matter of hours, only to have its momentum abruptly halted by the latest tariffs set forth by the U.S. president against several countries. Consequently, BTC slid more than $6,000 in mere minutes, settling slightly above $82,000.
Since then, it has seen a slight recovery, currently trading just above $83,000. Nevertheless, its market capitalization has decreased to $1.65 trillion, while its dominance over the altcoin market remains close to 60%, according to CoinGecko.
Altcoins Back in the Red
Many altcoins experienced a rally alongside Bitcoin but faced severe rejections and price drops. Toncoin, Avalanche, and Solana led the downward trend among major market cryptocurrencies, losing as much as 6% daily and over 10% from their peaks yesterday.
Ethereum (ETH), XRP, Dogecoin (DOGE), Cardano (ADA), Stellar (XLM), and Chainlink (LINK) are also displaying red figures, albeit to a lesser extent. More extreme drops are seen in HYPE (–10%), CRO (–11%), and PI (–7.5%).
The total cryptocurrency market capitalization has lost approximately $140 billion since yesterday’s maximum, now sitting at $2.765 trillion according to CoinGecko.
This volatility wiped out nearly $500 million in leveraged positions, with long positions slightly dominating at around $260 million. Nearly 160,000 traders were impacted over the past 24 hours, as reported by CoinGlass.
This recent market turbulence underlines the ongoing uncertainties in the cryptocurrency landscape. Keeping an eye on regulatory developments and market sentiment remains crucial for investors moving forward.
